Re: One problem with these models
"These models assume that the infinite productivity increase will be matched by an infinite consumption increase."
I couldn't agree more. To make things worse, all those masses of the unemployed will have to lower their consumption rates. Yeah, Mr. Capitalist got rid of most of his workforce but now he has nobody to sell his goods to!
The "basic salary" is just, as you said, bread and circus, and a temporary solution at best.
In my humble opinion, the only -acceptable- way out of this conundrum would be shorter work hours for everybody, mandated by the State with heavy fines -or even jail time- for those employers that don't comply. But I'm afraid that we'll have to survive several revolutions first. :-(